Cite a case or statute that lets suppliers get prompt pay please
1 reply
Oct 25, 2019
California specific laws with respect to prompt payment on construction projects can be found in the following statutes: Cal. Civ. Code §§ 8800 – 8802, 8810 – 8822; Cal. Bus. & Prof. Code § 7108.5 , and Pub. Cont. Code §§ 7107, 10261.5, 10262.5, 10853.
Generally, on private projects, progress payment to direct contractors must be made within 30 days of invoice, and final/retainage payment must be made within 45 days of the project's completion as a whole. For sub-tier parties on private projects, progress payment must generally be made within 7 days after payment is received from above, and final/retainage payment within 10 days. However, this time period can be modified by contract between the parties. The time periods are similar for public projects.
If you need to send a demand for payment pursuant to California prompt payment laws, you can do so here.